CF Energy Corp. Announces Exercise of Option to Cause Estate of Mr. Huajun Lin to Reinvest RMB 36,000,000 in Common Shares of the Company, Intention to Apply for Approval to Commence a Normal Course Issuer Bid
TORONTO, July 26, 2019 (GLOBE NEWSWIRE) -- CF Energy Corp. (TSX Venture Exchange: CFY) (“CF Energy” or the “Company”) announced today that the board of directors of the Company has determined to exercise the Company’s option pursuant to the Loan Discharge Agreement dated May 25, 2017 among the Company, Sanya Changfeng Offfshore Natural Gas Supply Co., Ltd. and Mr. Huajun Lin (“Mr. Lin”) to require the estate of Mr. Lin (the “Estate”) to invest an aggregate amount of RMB 36,000,000 (approximately C$6,861,587) in common shares of the Company (the “Investment”). Accordingly, the Estate will make the Investment at a price of C$0.68 (being the 30 day volume weighted average trading price of the common shares of the Company preceding June 28, 2019, as prescribed under the Loan Discharge Agreement) per common share representing a premium of approximately 6.3% over the closing price of the common shares of the Company on July 24, 2019, the date immediately prior to the date of this press release.
To the knowledge of the Company, the Estate currently holds approximately 34,683,500 common shares, or approximately 53.16% of the outstanding common shares of the Company and following the Investment, based on the exchange rate of C$1 to RMB5.2466 as of June 28, 2019, will hold approximately 44,774,068 common shares or approximately 59.43% of the total outstanding common shares of the Company (including the common shares issued in connection with the Investment). The Investment is subject to approval of the TSXV and relevant government approvals to be obtained by the Estate.
The Company also announced today that it intends to apply to the TSXV for approval of a normal course issuer bid (the “NCIB”) to be undertaken through the facilities of the TSXV. The Company intends to apply up to RMB 6,000,000 (approximately C$1,143,597) of the proceeds from the Investment by the Estate to acquire common shares of the Company over the TSXV pursuant to the NCIB. The NCIB remains subject to the approval of the TSXV and the completion of the Investment. The Company will make a further announcement regarding the details and commencement of the NCIB in accordance with the rules and policies of the TSXV.
About CF Energy Corp.
CF Energy Corp. is a Canadian public company currently traded on the TSXV under the stock symbol “CFY”. It is an integrated energy provider and natural gas distribution company (or natural gas utility) in the PRC. CF Energy strives to combine leading clean energy technology with natural gas usage to provide sustainable energy to its customer base in the PRC. In 2009, CF Energy was recognized as being one of China’s the Top Ten Most Influential Brands in the Natural Gas Industry and in 2019, ranked amongst the 2019 TSX Venture 50 top performers on the TSXV for the 2018 year.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking statements and forward-looking information (collectively, “Forward-Looking Statements”). All statements, other than statements of historical fact, included or incorporated by reference in this document are Forward-Looking Statements, including statements regarding activities, events or developments that the Company expects or anticipates may occur in the future, including with respect to the investment of the RMB 36,000,000 by the Estate and the intention of the Company to commence an NCIB. These Forward-Looking statements can be identified by the use of forward-looking words such as “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “believe” or “continue” or similar words or the negative thereof. No assurance can be given that the plans, intentions or expectations or assumptions upon which these Forward-Looking Statements are based will prove to be correct and such Forward-Looking Statements included in this news release should not be unduly relied upon.
Although management believes that the expectations represented in such Forward-Looking Statements are reasonable, there can be no assurance that such expectations will prove to be correct. Such Forward-Looking Statements are not a guarantee of performance and involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such Forward-Looking Statements. These factors include, without limitation, no significant and continuing adverse changes in general economic conditions or conditions in the financial markets. Readers are cautioned that all Forward-Looking Statements involve risks and uncertainties, including those risks and uncertainties detailed in the Company’s filings with applicable Canadian securities regulatory authorities, copies of which are available at www.sedar.com. The Company urges readers to carefully consider those factors.
The Forward-Looking Statements included in this news release are made as of the date of this document and the Company disclaims any intention or obligation to update or revise any Forward-Looking Statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Source: GlobeNewswire
(July 26, 2019 - 12:01 AM EDT)
